Accounting Assignment

Journal Entries Assignment for Students

Journal Entries Assignment Help

First record of transaction inside books of account is known as Journal entries. Journal entries are the first entry done for the transaction in the chronological approach, and helps in preparing additional financial accounting statements for example ledger. Journal entries are the most simple form of accounting entries where we get to understand accounts which are affected by the specific transaction. Journal entry not simply assists with ascertaining the accounts i.e. real, personal or nominal accounts are affected but it also assists with identifying the management of those account in the specific transaction. All bookkeeping transactions are listed by means of publication records that show account, values, and whether these records will be listed in debit or credit part of records. To document any transaction in the books, journal uses double entry book keeping system, where each debit has equal credit amount. Transactions are therefore recorded on both the side of the format, wherever debit is on the left hand side while credit is on the right hand side. In journal entry, sum of debit side is always equal to the sum of the credit side of the transactions. Hence the journal account is probably balanced when sum of debit is equal to the sum of the credit side. Every journal entry needs the narration which is done to explain the reason behind debit and credit of the books of accounts. A folio number is usually given in the format to cross check the accounting records of the two documents.

Journal entries are of two types

Simple Journal entries where two accounts are affected, one is debited and other is credited.

Compound journal entries are those where more than two transaction are effected in the books of account.

In journal entry those accounts which are debited are as follows:

Increase in the asset account is debited.

Increase in the expenses is also debited.

Any decrease in the amount of liability is debited.

Decrease in the amount of share holder equity is debited.

Decrease in the amount of revenue is also debited in the books of accounts.

Similarly those accounts which are recorded on the credit side of the journal entry are as follows:

When the amount of asset is decreased by the any amount then that amount is credited.

Any decrease in the expense account is also credited.

If liability is increased, then the amount will be credited.

If the amount of equity increases then the amount will be credited to equity account.